The 10 Best Canadian Blue-Chip Stocks to Buy Now

This is the only list you’re ever going to need if you want strong past performance and a stellar future outlook. Oh, and did I mention dividends?

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published October 30, 2024 4:00 pm EDT

Canadian blue-chip stocks are like the all-stars of the TSX, providing reliable dividends, solid growth potential, and resilience in challenging markets. Whether you’re seeking income or long-term appreciation, these stocks can be cornerstone investments. But there are some that beat out the rest. Today, let’s take a look at 10 of the best to see why each is still worth considering right now.

profit rises over time — Source: Getty Images

Financial Sector

Royal Bank of Canada (TSX: RY) and Toronto-Dominion Bank (TSX: TD) are the powerhouses of Canadian banking. Both have been performing solidly, with Royal Bank’s recent earnings showing 13% year-over-year revenue growth. Meanwhile, TD is continuing its strong North American expansion. Both banks have a long history of paying dividends, with yields currently at around 3.3% for RY and 5.2% for TD. The forward price/earnings (P/E) ratios of 13.3 for RY and 9.8 for TD also reflect value in the current market, making each top choices for dividend investors who want both income and growth.

Bank of Nova Scotia (TSX: BNS) rounds out the banking trio. BNS offers a hefty dividend yield of 5.8%, which is one of the most attractive in the sector. While earnings have faced some headwinds with a slight drop in quarterly earnings growth, the bank’s global exposure, particularly in Latin America, still makes it a strong diversification play.

Infrastructure

Canadian National Railway (TSX: CNR) is an essential player in Canada’s infrastructure, facilitating the movement of goods across the continent. Recent earnings showed a slight dip in revenue, but CNR’s strong margins and a 2.2% dividend yield make it a reliable, long-term bet. This stock is perfect for investors seeking both income and exposure to a critical sector of the economy.

Meanwhile, Fortis (TSX: FTS) is a top utility stock known for stability and reliability. With 50 consecutive years of dividend increases, Fortis is a solid choice for income investors looking for defensive plays. Its current dividend yield is around 4%. The blue-chip stock’s consistent growth in regulated utility assets ensures future earnings and dividend growth.

Enbridge (TSX: ENB) is a leader in energy infrastructure. With a forward dividend yield of 6.4%, it’s a favourite among income investors. Despite some recent headwinds in the energy sector, Enbridge’s diversified portfolio of oil and natural gas pipelines positions it for long-term growth. The blue chip stock’s focus on renewable energy projects also provides a solid foundation for future sustainability and growth.

Rounding out infrastructure, Brookfield Asset Management (TSX: BAM) continues to impress with its diversified portfolio, ranging from real estate to renewable energy and infrastructure assets. Brookfield’s ability to generate consistent returns, coupled with a dividend yield of 2.8%, makes it a great choice for growth and income. Its forward P/E of 28.8 might look steep, but its growth potential justifies the premium valuation.

Essentials

We all need to be connected, which is what makes BCE (TSX: BCE) one of Canada’s leading telecoms, one with a generous dividend yield of 8.7% that’s hard to ignore. Although BCE has faced some challenges in terms of revenue growth, its robust cash flow ensures that dividends remain secure. For investors looking for consistent income in the telecom sector, BCE is a standout pick.

Magna International (TSX: MG), one of the world’s leading automotive suppliers, offers exposure to the global auto industry’s growth and innovation. Magna’s current dividend yield sits around 4.4%, and with electric vehicles becoming a key growth area, the blue-chip stock is well-positioned for future growth. Despite a small dip in revenue, the long-term outlook remains strong, thus making Magna a solid option for those seeking industrial exposure.

Nutrien (TSX: NTR) is a top player and essential stock in the agriculture space, specializing in potash and fertilizers. Despite recent revenue challenges with a 13% decline in quarterly revenue growth, Nutrien offers a dividend yield of 4.5%, which is quite attractive. The growing global demand for agricultural products supports Nutrien’s long-term potential, thereby making it an excellent pick for those looking for exposure to the agriculture sector.